PIC owned by the state oil company Kuwait Petroleum.

The joint venture will own Dow's ethylene complexes in Fort Saskatchewan, Alberta; Bahia Blanca, Argentina; and Tarragona, Spain.
Other ethylene crackers, such as Dow's Freeport, Texas, site, will supply the partnership with feedstocks under contract.

In 1995, Union Carbide and PIC formed the joint venture Equate with minority partners to produce ethylene, polyethylene, and ethylene glycol.
Dow purchased Union Carbide in 2001 and built on this foundation by launching a similar joint venture, Equate II, which is now under construction in Kuwait.

Equate I

当初株主:Dow Chemical (旧UCC45%
       Petrochemical Industries Co.(PIC) 45%
       Boubyan Petrochemicals 10%
民営化後:Dow Chemical (旧UCC) 42.5%
       Petrochemical Industries Co.(PIC) 42.5%
       Boubyan Petrochemicals 9%
       Qurain Petrochemical 6%
製品:エチレン  当初 650千トン 増設後 800千トン
LL/HDPE    450千トン      600千トン
EG         300千トン      400千トン

    PP         100千トン      120千トン

Equate II

社名:Kuwait Olefins Company
株主:Dow Chemical  42.5%
    Petrochemical Industries Co.(PIC) 42.5%
    Boubyan Petrochemicals & NPS 9%
    Qurain Petrochemical 6%

Ethylene Unit 850 KTA
Polyethylene Expansion 300 KTA (Additional)
Ethylene Glycol 600 KTA

In 2004, Dow and PIC formed the global ethylene glycol joint venture MEGlobal and the polyethylene terephthalate partnership Equipolymers. Like the planned petrochemical joint venture, these ventures were formed through PIC's purchase of a share in established Dow businesses. Taken together, all the Dow/PIC partnerships are expected to generate about $14 billion in revenues.


Liveris said he wants to focus the company's remaining businesses - such as crop protection, insulation, water treatment, and advanced materials - on societal "megatrends" such as human health, energy, infrastructure and transportation, and electronics and communications.

Liveris referred to the megatrend areas as his company's "hunting grounds." And Dow will have $9.5 billion of cash from PIC to continue what it calls its transformation. Liveris adds, "We are not averse to any deal, no matter what the size."

On that point, one stock analyst, BB&T Capital Markets' Frank Mitsch, asked Liveris whether Dow was already planning a large acquisition. "The transformation agenda will require acquisitions," the CEO responded. "Stay tuned," he later added. "The Dow Chemical Company ain't done yet."


Dow Chemical Investor Meeting

Webcast from New York City, Thursday, December 13, 2007

Building the Dow of Tomorrow
Andrew N. Liveris

A World-Class Petrochemicals Company
 Ethyleneamines and ethanolamines
 Related technologies
 Fully dedicated hydrocarbon assets
  Fort Saskatchewan, Canada (cracker)
  Bahia Blanca, Argentina (cracker)
  Tarragona, Spain (cracker and octene manufacturing facility)
 Ethylene supply agreements from Dows other crackers

Creating a Polyolefins Leader
 No. 1 industry leader
 Advantaged feedstocks for growth
 Global franchise
 Unparalleled technology, R&D
 History of operational excellence
 Strong financial position
 Desire - and capability - to grow
 $10.8 billion in revenue - Fortune 250 equivalent

The New Enterprise A World-Class Competitive Petrochemical Giant
(If combined with EQUATE / MEGlobal / Equipolymers)
 $14B in revenue
 14 sites - 6,300 employees
 Broad supplier of plastics (PE / PP / PC / PET) - Worlds largest polyolefins producer
 Worlds largest EO / EG / EO derivatives company

Performance Portfolio - Market Trends
 Four mega-trends are shaping the world for Dow and our customers
 Dow has unique capabilities to capitalize on these trends and provide unique solutions
  Global footprint
  Science and technology
  Portfolio breadth and depth

Trend Human health Energy Infrastructure
& Transportation
Electronics &
Dow forcus Food Nutrition
Alternative Energy Solution
Energy efficiency solution
Water treatment
Advanced materials
Growth vehicles Dow AgroScience
Dow Wolff Cellulosics
Specialty Plastics &
 Specialty Chemicals
Dow Building Solutions
Dow Hydrocarbons
Dow Epoxy
Dow Automotive
Dow Coating Solusions
Dow Water Solusions
Wire & Cables
Polyurethanes & PU Systems
Advanced Electronics Business
Key Dow
Water Soluble Materials
Advanced Packaging
Crop Protection
Applied Energy Efficiency
CO2 Management
Building Integrated
Building Materials
Advanced Materials
High Throughput
  Formulation Capability
Optical Materials
PCB Materials
Advanced Materials Science
Interlayer Dielectircs

Extend Geographic Growth
 R&D and IT centers in China  Epoxy in China Glycol Ethers and Latex in China TDI in Brazil 
Ag seeds facilities in Brazil (3 cities) Latex, PU Systems in Brazil R&D center in India 
Gazprom discussions in Russia National Oil Company in Libya Methane-to-Chemicals research in China
 Manufacturing & Engineering in India  Support Services in India Dow Automotive in Dow Central Germany
 Styrofoam in Russia PU Systems in Russia Dow Izolan in Russia
 Zhejiang Omex Environmental Engineering in China Rompetrol Petrochemicals agreement in Romania
 Liquid crackers in Thailand

 Dows annual revenue growth rate in emerging economies hasbeen twicethe growth rate in established regions.

Actively Manage Portfolio
Since beginning of 2003
 92 Plants shutdown or announced
 42 Sites exited or announced
 38 Businesses divested

Accelerate Technology & Innovation
 New Product Sales = 33% of total
 Patent applications have doubled in the last five years
  551 in 2002 vs. ~1,100 in 2007
 Project pipeline has doubled in last 10 years
  ~$5B in 1997 vs. ~$10B today
 Elite global talent pool working on >600 R&D projects
  Potential EBIT of $2B by 2011

  Ranked as one of Top 10 R&D companies  R&D Magazine


2008/12/28 Dow     関連情報

Dow Chemical Receives Notification of Kuwait Decision to Cancel K-Dow Partnership

Today, The Dow Chemical Company has been verbally informed by our partners at the Kuwait Petroleum Corporation (KPC) and Petrochemicals Industries Company (PIC) about a decision made by the Kuwait Supreme Petroleum Council (SPC), to reverse its prior approval of the agreement between Dow and PIC to enter into K-Dow Petrochemicals, a planned 50-50 joint venture company.  The partners have informed us that there will be official written notification of the decision within the next few days.

Dow is extremely disappointed with the decision by the Kuwait Government, and is in the process of evaluating its options pursuant to the Joint Venture Formation Agreement. While disappointed in this outcome, Dow remains committed to its Middle East Strategy. 

クウェイトの石油政策は「最高石油評議会 (Supreme Petroleum Council)」によって決定される。同評議会は、サバーハ アル・アハマド アル・サバーハ第1副首相兼外務大臣を議長とし、石油大臣をはじめとする 関係閣僚、中央銀行総裁および民間の代表者達から構成されており、石油政策に関する最高責任を有している。年に4回以上開催される。

2009/1/6 Dow     ブログ

Dow Chemical Confirms Commitment to Transformational Corporate Strategy
Will Pursue Legal and Other Options on Kuwait Deal; Accelerates Discussions around New Partnerships; Reiterates Commitment to Strong Investment Grade Rating

The Dow Chemical Company today announced a wide range of legal, operational and financial actions that will keep the Company on track to fulfill the transformational corporate strategy Dow has pursued since 2005.

Dow to Pursue Legal and Other Options to Fulfill Rights under Kuwait Agreement

Beyond K-Dow: New Partnerships, New Opportunities

Remaining Responsive to a Volatile Global Economic Environment

Commitment to Financial Discipline and Maintaining Strong Investment Grade Credit Ratings

Commitment to Dow Shareholders

May 24, 2012  Dow 

Dow Announces $2.16 Billion Award in K-Dow Arbitration

The International Court of Arbitration of the International Chamber of Commerce (the “ICC”) this morning released its findings in the arbitration case between The Dow Chemical Company and Petrochemical Industries Company of Kuwait (PIC) relating to the K-Dow transaction.

The ICC award holds that PIC was liable, and awards damages to Dow of $2.16 billion, not including interest and costs. Dow and PIC mutually agreed to resolve their contractual disputes through arbitration before the ICC, which is comprised of preeminent legal experts with experience in high-value commercial litigation. The award is final and binding.

“This outcome brings resolution and closure to the issue,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. "We remain focused on continuing to move forward with our transformation and profitable business partnerships – both in Kuwait and around the world.”

Dow has been doing business with Kuwait for nearly 40 years. The Company's partnership with Kuwait, which includes several industry-leading joint ventures, remains strong and will continue to benefit both parties. Counsel for Dow was Shearman and Sterling.



ダウは12月13日、クウェート国営石化会社 Petrochemical Industries Company (PIC) との間でグローバルな石化JV50/50)を設立すると発表した。


同社はクウェートのPICとの合弁会社 K-Dow Petrochemicals 設立により、事業売却額マイナス出資で75億ドル、配当15億ドルで、合計90億ドル(税引後では70億ドル)を受け取ることとなっていた。

2007/12/14 速報 ダウとクウェートのPIC、グローバル石化JVを設立  

ダウ は2008年7月10日、 188億ドルでRohm and Haas (R&H)を買収する契約を締結したと発表した。

2008/7/11 速報 Dow ChemicalRohm and Haas を買収

2008年の12月27日までは、ダウの変身戦略が成功し、価格変動の影響を受ける石油化学をAsset-light 方式で全てJV化するとともに、Rohm and Haas 買収でスペシャルティ分野の強化が出来る筈であった。

Dow はR&H 買収資金188億ドルを、つなぎ融資 130億ドル、Warren Buffett のBerkshire Hathaway Inc. からの投資 30億ドル、Kuwait Investment authorirty からの投資10億ドルで賄うことにしており、PICへの売却資金でつなぎ融資の一部を返済する予定であった。

しかし、2009年1月1日のスタートを目前にして、2008年12月28日、K-Dow Petrochemicals が破談となり、この金が入らなくなった。

2008/12/29 ダウとクウェートの石油化学合弁、一転破談に

1月23日、ダウはR&H との統合でFTCの承認を得たと発表した。ECは既に1月8日に承認しており、買収の全ての条件が満たされた。

2009/1/26 FTC、Dow と Rohm and Haas の統合を条件付で承認



つなぎ融資は1年間の契約のため、 K-Dow 破談により、このまま買収を行えば資金繰りが危うくなるとして、格付会社が投資基準以下への格下げを行うことを明言しており、格付を投資適格にとどめることが必須であるとするダウとしては資金繰りの目処をつけるまでは買収を行えない状況に陥っていた。

R&Hは1月26日、契約の履行を求め、Delaware州の裁判所にDow を訴えた。この裁判は3月9日と決まった。

そして、裁判の始まる当日、ダウはR&H 及びその大株主との間で、これまでと異なる条件で41日までに買収を行うことで合意した。

2009/3/10  ダウ、Rohm & Haas 買収で合意 

当初発表の1株 $78 でのR&H株式買収(153億ドル)のうち、$63 124億ドル)は現金で支払い、残りの$1529億ドル) は優先株で渡す。

R&H2大株主(ヘッジファンドのPaulson & Co. Inc.Haas Family Trusts はダウの出す永久優先株25億ドルを購入、更に、そのうちのHaas Family Trusts はダウのオプションでダウの株式に5ドル投資する。
Haas Family Trusts に追加の5億ドルの投資をしてもらうこととなった)

  当初契約  130億ドル 20104月まで
改正     合計125億ドル、うち45億ドルは2010480億ドルは20114まで(1延長)

このほか、Berkshire Hathaway Inc. から30億ドル、Kuwait Investment authorirty から10億ドルは従来どおりとなっている。

Dow Chemical、史上初の減配

今回のMorton International の売却額は16.75億ドルで、当局の承認などを経て、年央に完了する見込み。



Standard & Poor's は4月1日、ダウの格付けをBBBからBBB-(ジャンクボンドの1ランクだけ上)に引き下げた。

Moody's も422Baa3 (ジャンクボンドの1ランクだけ上)に引き下げ、"negative outlook”(否定的な見方)とした。

ダウは2009年4月1日、Rohm & HaasR&H)の買収を完了したと発表した。



Aug 28, 2012 Reuters

Kuwait company to pay compensation to Dow - paper

Tue  Kuwait's state-run Petrochemical Industries Co. (PIC) said it would make an initial compensation payment to Dow Chemical Co after an arbitrator ruled it must pay $2.16 billion to the U.S. group, Bahrain's Akhbar Al Khaleej newspaper reported on Tuesday.

The International Chamber of Commerce's International Court ruled in May that the Kuwaiti chemical company should pay the sum for wrongly cancelling a planned plastics joint venture in 2008.

Dow's law firm Shearman and Sterling LLP said at the time that it was one of the largest arbitration awards ever made and that the court's decision was final. PIC is a unit of state-run Kuwait Petroleum Corp.

PIC's managing director Maha Mulla Hussain has sent a letter to oil minister Hani Hussein to request approval for the company to make a first payment of 260 million Kuwaiti dinars ($921 million) the newspaper reported citing unnamed sources.

The sources said PIC's Hussain had asked the oil minister to place the item on the agenda for the company's board meeting next Tuesday for approval.

PIC was not immediately reachable for comment. If the report is confirmed, it would be the first time PIC has said it would pay compensation to Dow.

Kuwait pulled out of the $17.4 billion "K-Dow" joint venture with the U.S. company as the global economy sunk into a deep recession nearly four years ago.

March 04, 2013 Dow

Dow Announces Closure of Proceedings in K-Dow Arbitration     Full Award Totals $2.48 Billion

The International Court of Arbitration of the International Chamber of Commerce (the “ICC”) today released the final award amount, representing interest and costs, in the arbitration case between The Dow Chemical Company and Petrochemical Industries Company of Kuwait (PIC) related to the K-Dow transaction.

The final interest and costs awarded to Dow totals $318 million, as of today, and is in addition to the partial award of $2.16 billion announced last May – resulting in full damages awarded to Dow equal to $2.48 billion. This is the last step in the disciplined arbitration process, bringing the process to a close. Both awards (partial and final) are binding and non-appealable.

“Payment of these damages of nearly $2.5 billion will allow Dow to accelerate its priority uses for cash by further strengthening our balance sheet,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “Dow and Kuwait share a long history and strong partnership, and this award ruling brings suitable closure to the arbitration process. The Dow team fully expects, and we are resolved to ensure, that PIC honors its contractual commitments in a timely manner.”

The total award amount is subject to continuing interest until Dow receives payment.